The lack of modern infrastructure is a major impediment for economic development and growth in the region, and needs to be addressed to cope with urbanisation.

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Colliers International Myanmar says the lack of modern infrastructure is a major impediment for economic development and growth in the region, and needs to be addressed to cope with urbanisation.

Colliers International Myanmar recommends the country needs to "step up efforts in narrowing infrastructure deficits" in order to manage rapid urbanisation and cope with population growth.

Myanmar currently has one of the largest infrastructure deficits in Asia and the Pacific, according to the United Nations Economic and Social Survey of Asia and the Pacific.

"According to The Economist Corporate Network, Myanmar will remain an outperformer in Asia, with real GDP growth forecast to average 7.3 per cent a year to 2021. The brisk pace of economic growth will continue to be underpinned by large and primarily foreign-invested projects in a number of areas, notably critical infrastructure and energy, as well as rapid growth in telecommunications," Colliers International Myanmar told the Mingalar Real Estate Conversation.

In comparison with other South East Asian countries like Singapore, Thailand, and Malaysia, Myanmar is still in an early stage of urbanisation.

Even in terms of the most basic infrastructure, the country scored a low ranking of 141 out of the 148 countries in the latest World Economic Forum’s Global Competitiveness Report.

Colliers says this "infrastructure deficit" is most evident in the most remote parts of the country.

"The deficit is most evident in rural and remote areas, where even the most basic amenities are wanting. This immense infrastructure deficiency is the result of decades of underinvestment. Poor maintenance of public infrastructure has compounded the problem," Colliers says.

According to Colliers, this low ranking is most evident in terms of road density, access to electricity, water, and basic sanitation facilities, number of telephone lines, mobile subscribers, and internet users.

"The lack of modern infrastructure is a major challenge for economic development and a major impediment to growth objectives," Colliers says.

Developing nations like Myanmar are usually unable to cope with rapid urban population growth due to a lack of infrastructure and services - resulting in a strain on services.

Colliers urges the country to address this to "enhance domestic and regional connectivity, support local businesses and enterprises, increase access to employment opportunities, and provide access to basic social services and economic centres."

"Without massive investment from the government, development finance institutions and the private sector, Colliers sees that Myanmar’s infrastructure gap will put the footbrakes on the economy. Investors are much welcomed, however, must be strategic in the sense that the country is changing rapidly and investors must plan for both the present and what the economy will look like after a decade of catch-up growth," Colliers International Myanmar told the Mingalar Real Estate Conversation.

"Likewise, they must be innovative to find the right scale and type of power plant, transport system or connectivity hub that is able to maintain support from local communities which feel newly empowered. Overall, we believe that opportunities for successful, sustainable investment in Myanmar’s infrastructure development will be present for years; identifying them will require hard work, but the results will be worth it."